NVIDIA Becomes the First Company Ever to Hit $5 Trillion Market Cap

IN NEWS:

NVIDIA Becomes the First Company Ever to Hit $5 Trillion Market Cap

ANALYSIS:

• Historic Valuation Milestone:
  NVIDIA has become the first company in the world to cross a $5 trillion market capitalisation, making it the most valuable company globally.
• Market Position:
  • As of October 30, 2025, NVIDIA’s market cap reached $5.03 trillion, surpassing all global corporations.
  • On October 29, it stood at approximately $4.89 trillion.
  • Microsoft ($4.03 trillion) and Apple ($4 trillion) follow in the second and third positions, respectively.
  • Other global tech majors — Google ($3.33 trillion), Amazon ($2.46 trillion), and Meta ($1.89 trillion) — trail behind.
• Key Factors Driving Growth:
  1. Leadership in AI Hardware: NVIDIA dominates the GPU market, which powers AI models, data centres, robotics, autonomous systems, and telecommunications.
  2. AI Factories & GPU Computing: CEO Jensen Huang highlighted during the company’s GTC event in Washington, D.C., that computing is transitioning from general-purpose CPUs to AI-focused GPU-based infrastructure — referred to as AI factories.
  3. Blackwell Architecture Expansion: NVIDIA projects $500 billion in Blackwell GPU sales by 2026, after already recording $100 billion revenue in the first half of 2025.
  4. US Semiconductor Manufacturing Boost: Production of Blackwell chips has begun at TSMC’s Fab 21 in Phoenix, Arizona, enhancing domestic semiconductor capabilities.
• Technological Innovations:
  • Introduction of NVQLink, a hybrid GPU-quantum architecture, is expected to advance quantum computing and push the frontier toward achieving quantum advantage.
  • TSMC Arizona is set to produce 2nm, 3nm, 4nm, and A16 chips, supporting AI, telecommunications, and high-performance computing applications.
• Strategic Outlook:
  • NVIDIA’s trajectory reflects a broader AI-driven transformation in global computing, where GPU-based systems form the backbone of next-generation data processing.
  • The company’s dominance in AI chipmaking positions it as a central player in the global technological and industrial evolution.

STATIC PART:

• NVIDIA Corporation:
  • Founded: 1993
  • Headquarters: Santa Clara, California, USA
  • CEO: Jensen Huang
  • Core Areas: Graphics Processing Units (GPUs), AI Hardware, Data Centres, Semiconductors, Quantum and Robotics Systems
• Market Capitalisation (Market Cap):
  • The total market value of a company’s outstanding shares. It is calculated by multiplying the share price by the total number of shares outstanding.
• TSMC (Taiwan Semiconductor Manufacturing Company):
  • One of the world’s largest semiconductor manufacturers.
  • Its Fab 21 facility in Phoenix, Arizona, represents a key part of US semiconductor supply chain localization efforts.
    
    Updated – 30 Oct 2025 ; 12:23 PM | Analytics India Magazine
    Source: Analytics India Magazine